Charity activity for the sake of people

June 01, 2007

Charity and desire to help the needy have always been inherent in the Uzbek people, and this activity has never been in need of legislative regulation and has always been something worthy of homage. The law "On Charity" which has entered into force expends the opportunities of NGOs in this sphere, experts believe.

In a country that attempts to strengthen democracy and build a strong civil society, public organizations tend to come to the fore, and such a law is indispensable in ensuring these organizations' effective activities, believes Hamidulla Nazarov, deputy and member of the Committee for Democratic Institutions, NGOs and Citizens' Self-Governing Bodies of the Legislative Chamber of the Oliy Majlis (Parliament). Charity is an activity whose existence does not depend of the availability of such a law. One could always do a charitable act at will. For private individuals, unlike for organizations, this law does not have any significance. For organizations it is important and opportune since it determines their status and procedure for providing assistance and receiving state support, and tax benefits, the deputy said in his interview with Uzbekistan Today newspaper.

In his view, when modern states provide social assistance to their citizens they not always succeed in reaching the target population and proportionate satisfaction of people's needs. This function is assumed by numerous public organizations, and the legislative regulation of their charitable activities not only determines goals but also provides for guarantees of state support.

The law precisely determines charitable goals and does not impose limitations on those willing to do a charitable act, and, thus, entitles them to set their own goals and procedure for allocating their charitable donations.

The only limitation the law ascribes in this regard is the support of any activity that is inconsistent with legislation. This is a natural norm which is called to prevent efforts disguised as charity to carry out activities that are unlawful, says Hairulla Ibragimov, member of the Committee of the Senate for Agriculture, Water and Ecology. The Law "On Charity" stipulates that material support from commercial bodies, political parties and movements will not be regarded as charitable.

Just as important, according to UT interviewees, is the limitation of charitable activities in the use of financial means they have been given. Thus, in accordance with article 9 of the Law "On Charity", charitable organizations cannot use over 20% of the financial means they are provided with for personal needs, which will prevent non-target use of donations.

The Law "On Charity" is not the only document directed at the support of charitable acts. In an effort to stimulate such activities, the Tax Code grants a number of tax benefits for charitable organizations and organizations that tend to make donations for charity purposes. The new edition of the primary tax law of the Republic which is currently under development is to further facilitate charitable activities. All financial means given to citizens' self-governing bodies that are to be distributed among economically disadvantaged families in accordance with the Presidential Decree "On measures to further improve and strengthen the system of the social support of the population" are fully exempted from tax.